Michael Funk, an analyst from Bank of America Securities, reiterated the Hold rating on Zoom Video Communications (ZM – Research Report). The associated price target was lowered to $84.00.
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Michael Funk has given his Hold rating due to a combination of factors impacting Zoom Video Communications. The company reported solid quarterly results, with revenue and non-GAAP operating income exceeding expectations. However, while the Online segment showed positive trends, the Enterprise segment faced challenges, with management expressing caution due to elongated sales cycles and increased scrutiny from large customers.
Despite the positive performance in areas like Zoom Phone and the Contact Center, the overall growth trajectory for the Enterprise segment remains uncertain. The anticipated path to a 100%+ Enterprise net dollar expansion rate is not expected until fiscal year 2027. Given these mixed signals, Funk maintains a Neutral stance, reflecting the company’s current market position and future growth visibility.
Funk covers the Technology sector, focusing on stocks such as Autodesk, CCC Intelligent Solutions Holdings, and Box. According to TipRanks, Funk has an average return of -8.8% and a 37.31% success rate on recommended stocks.
In another report released today, J.P. Morgan also maintained a Hold rating on the stock with a $85.00 price target.